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US-China tensions escalate as top US tech companies reportedly cut off business with Huawei

By Humza · 52 replies
May 20, 2019
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  1. After declaring a national emergency, big names in the US tech industry have started to comply with the government's ban on doing business with "foreign adversaries," namely China's Huawei Technologies Co, the world's largest provider of networking equipment and No.2 smartphone maker. The company faces a ban similar to that placed on ZTE a year ago.

    Among the first tech giants to suspend business activities with Huawei is Alphabet Inc.'s Google, reports by Reuters. The move sees Google revoking Huawei's Android license and restrict it to using the Android Open Source Project (AOSP). "Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices," a Google spokesperson told the publication.

    This development seems to indicate that Google Android's experience on existing Huawei phones won't be immediately affected but the future for its current and any upcoming devices is uncertain as the company loses access to Android Q. Huawei can resume with developments in AOSP but the absence of critical features like the Google Play Store and Play Services means that it would have to ship phones without access to a marketplace with billions of Android apps and popular Google apps like Maps, Gmail and YouTube.

    Granted that Huawei's smartphone business in the US is insignificant but banning it from using software supplied by Google will likely cripple it in the global smartphone race. Within its home country, the company doesn't need Google's Android ecosystem owing to the availability of in-house alternatives likely made possible by a blanket ban on using foreign software and services. Outside China is a different story; Huawei has huge markets in places like Europe and India where Google's Android app ecosystem is the only viable option.

    Apart from software, Huawei now also faces a hardware supply issue in several departments with Intel, Qualcomm and Broadcom cutting off their chip businesses with China. While the company can bear the impact from Qualcomm with its own line of SoCs such as HiSilicon's Kirin chipset for mobile, it doesn't have a suitable alternative to Intel that provides it with server chips and processors for its MateBook line of laptops.

    Companies including Broadcom and Xilinx that supply programming and switching chips, a key component in manufacturing networking equipment, have also halted business with Huawei until further notice.

    Huawei pointed out the negative impact that this ban will have on the US economy. "It will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs and disrupt the current collaboration and mutual trust that exist on the global supply chain," the company said in a statement.

    Permalink to story.

  2. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,180   +859

    This is basically Trump's policies. He's decided to challenge China's stranglehold on US factory production (1/3rd of America's money leaves US shores headed for Asia) and they are determined to show him that they aren't tightening their grip.

    The next thing down the pipeline will be higher prices on Chinese-made goods (virtually everything sold here)

    Perhaps a down turn in the economy and consumer spending is the nail needed to make him a one term president?

    So much for the Mate X huh?
    TempleOrion, xxLCxx and dangh like this.
  3. kombu

    kombu TS Addict Posts: 87   +180

    We must unite against our president to fight for China's right to sell their cheaply made goods on our soil and undermine our production!
    Milest, billmcct and MaXtor like this.
  4. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,180   +859

    Buttigieg 2020
  5. dangh

    dangh TS Enthusiast Posts: 31   +41

    Will see how China respond. Bye, rare metals.
    TempleOrion likes this.
  6. fps4ever

    fps4ever TS Guru Posts: 299   +285

    Dimitrios, MaXtor and kombu like this.
  7. Uncle Al

    Uncle Al TS Evangelist Posts: 5,304   +3,710

    Actually the intelligence briefings about Huawei were pretty damning. What they call slight weaknesses in their architecture are easily exploited. Buying Huawei equipment today would be equivalent to selling more scrap steel to Japan prior to 1941 .....
    toooooot, MaXtor and kombu like this.
  8. raybk

    raybk TS Enthusiast Posts: 34   +9

    Trump is killing US: more expensive, more companies going to close.
    US cannot compete with China and Trump rudely stops using this dirty way.
    Trump will be the worst president in US history.
    Shame on Trump. Never vote for him!

    Maybe China should stop US from using gunpowder and paper since they were invented by China!
    TempleOrion likes this.
  9. pythonNoB

    pythonNoB TS Rookie

    This action is clear , US government is doing this forcing Google to cut off relations with Huawei, shame on Trump nd all his regulations. Huawei has the ability to develop their own OS and Play Market, others do whay Huawei don't.
    TempleOrion and xxLCxx like this.
  10. fps4ever

    fps4ever TS Guru Posts: 299   +285


    Please sir may I have my cheap junk? Trade agreements with China were so one sided it was like stealing and then thanking them for it. Nobody wants to be tied so deeply and lopsided to one trade partner. It should have been dealt with long ago.
  11. pacmutt

    pacmutt TS Rookie

    Come on guys.. This should be a no brainer. China remains a communist country and has built its entire new military on your electronic backs.
    A Red Chinese product, HikVision, in the security market was outted by the govt and private owners for having a built in back door and vulnerabilities so they could be accessed by Cchina on demand. Imagine the threat if they could access any cctv camera system they built already in our govt buildings on demand.
    HikVision was ordered removed from every govt office and property.Including DoS, DOD, etc..

    Huawei was found to have backdoors built into their hardware for the same treasons on their networks and cell phones systems.

    Most of this hardware was sold and installed under Bush and Obama's admininstration. They both sold us out. Imagine how screwed we'd be if we were attacked and our attackers had full access to our nationwide cctv, network and cell systems.

    Be glad trup is not selling us out too.
    Fimbulvetr, Dimitrios and TheBigT42 like this.
  12. TheBigT42

    TheBigT42 TS Maniac Posts: 315   +194

    I find it funny that the left is fighting for a minimum wage increase but supports buying cheap products from china made by a labor force that make basically nothing
    mongeese likes this.
  13. TheBigT42

    TheBigT42 TS Maniac Posts: 315   +194

    Lets keep buying products made with slave labor...Screw human rights
  14. Evernessince

    Evernessince TS Evangelist Posts: 3,913   +3,364

    Unfortunately all I see happening is some companies moving from China to Taiwan. It won't help US manufacturing.

    If it wasn't China, it would be any of the other dozen cheap labor countries. If you are going to claim that is the reason for this trade was, then you have picked the wrong reason. Technology transfer, that's a good reason. Not playing whack a mole.

    Well first off, no one was forcing the US to do business with China. Non-mandatory. It was the choice of US businesses completely. Second, can you link and quote parts of the agreement that were against America?

    China is not communist. Communism requires complete government control of wages and the price of goods. China has a capitalist economy, which is the exact opposite of communism. The government in China does not control wages or the price of goods.

    Well at the current rate that the US wage is increasing, especially when compared to the ballooning cost of living, China will catch up to America not too long from now in average wage.


    China at least has a consistent and nice increase YoY. Meanwhile American's are getting 2.8% more on average every year while inflation is 3.4% every year and the cost of goods has been increasing a steady 8% every year.
    TempleOrion, gamoniac and Clynt like this.
  15. pacmutt

    pacmutt TS Rookie

    "China is not communist" ..and Islam is just a religion, Illlegal aliens arent invading Americ and the Nazis never murdered the jews.. go back to school and slap your teachers, they lied along with the media.

    You dont own a company in China unless the govt approves it and they re a 50% partner.. usually their military under a "capitalist" name.
    xxLCxx likes this.
  16. fps4ever

    fps4ever TS Guru Posts: 299   +285

    What do you mean against America, what are you talking about there? This is about fair trade agreements not right or wrong. Our businesses (hech the entire world) caved on cheap slave labor when China had the upper hand. So what now we need to balance it out. Are you saying that is a bad thing? :neutral:
  17. Evernessince

    Evernessince TS Evangelist Posts: 3,913   +3,364

    Last I checked, 1970s China history lessons don't entirely apply to modern day.

    Balance what out? Name specifics. Where is America being "wronged"?
    Clynt likes this.
  18. fps4ever

    fps4ever TS Guru Posts: 299   +285

    Are you trolling and or serious? Per capita we should be exporting everything to them we can make but nope. Do you not see a problem with that? Again what do you mean by wronged??????

    Last edited: May 20, 2019
  19. Evernessince

    Evernessince TS Evangelist Posts: 3,913   +3,364

    Wait so China are the bad guys because Americans buy more chinese goods then they sell to the chinese? I fail to see the unfair part here. I see no problem with transactions that were carried out with agreement from both trade partners. What are you going to do, force China to buy from a limited pool of american goods they don't need? Now that would be unfair.
    TempleOrion, gamoniac, xxLCxx and 2 others like this.
  20. fps4ever

    fps4ever TS Guru Posts: 299   +285

    OK, you must either be Chinese or not an American...Let's see those agreements you say are so fair. Link please? And who are you to say agreements can't be changed or negotiated? That's life deals get changed and updated all the time. Who says they don't need or require goods the US has, You? Limited pool, of what? All you do is list vague references and inuendo's.

    I think I'm wasting my time here unless you care to back anything up...
  21. Daniele 00

    Daniele 00 TS Rookie Posts: 18   +10

    Inside my house we only own Huawei phones.
    ... And now I feel in the future I will only buy Huawei.
    I'm disgusted with USA exceptionalism.
    TempleOrion, gamoniac and xxLCxx like this.
  22. treetops

    treetops TS Evangelist Posts: 2,516   +522

    China pays for the tariffs so who cares? Just like Mexico paid for the wall, what is with all these people. How hard is that to understand? An the quotes below are fake news, permanent tax breaks for corporations and the exceedingly rich won't be paid for by the middle class and poor Americans... And by the way I love guns, even though you can't find a single video or photo of me shooting a gun or even holding a gun made in the last 100 years. Also don't worry that I have never accurately stated a numerical fact on camera. I have the best people working on that.

    "The sweeping rewrite of the tax code that Republicans hustled through Congress late last year, signed into law by Trump as his signature legislative achievement, is expected to add about $1.5 trillion to the deficit over 10 years.
    The bill approved Friday would add another $545 billion through 2028, according to an estimate by Congress’ bipartisan Joint Committee on Taxation."

    "While the new law slashed the corporate tax rate permanently from 35 percent to 21 percent, its tax cuts for individuals and the millions of U.S. “pass-through” businesses expire in eight years. The “pass-through” businesses funnel their income to owners and other individuals, who then pay personal income tax on those earnings, not the corporate rate. They are allowed under the new law to deduct 20 percent of the first $315,000 of their earnings."
    TempleOrion and Clynt like this.
  23. TsVkK

    TsVkK TS Booster Posts: 32   +20

    If you raise the price on imported goods people will choose local goods in preference. Once one takes away the Chinese manipulated trade strategy (can do it cheaper than anyone) they have nothing left.
    Better quality products that 100% support local economies are better. Paying slightly more isn't always an issue, except for the short sighted who have no care for the future.
  24. treetops

    treetops TS Evangelist Posts: 2,516   +522

    Be it China or some other country, USA will not match .31 cents an hour, 35 hour shifts, no over time. Suicide nets.
    Clynt likes this.
  25. TsVkK

    TsVkK TS Booster Posts: 32   +20

    Well that's a good thing to see end. Paying slave masters to drive slaves is the same as being slave owners in effect. Slavery was abolished a long time ago in civilized society for good reason.
    China has been breaking all the rules and getting away with it for a long time. Now has begun their reward for their morally defunct and unethical practices. The only thing they have is they are cheaper, nothing about them is better.
    toooooot likes this.

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